Caribbean Agrifood Business Session n°10

Successes from agrifood entrepreneurs and SMEs in packaging and labelling

The agriculture and food industry is a dynamic sector of the global economy, providing employment, contributing to food security and forming the livelihoods of millions of people globally and in the Caribbean region.

Packaging and labelling are key areas of the agrifood value chain – whether in fresh or processed segments – and are important areas of investment for any business. They keep the product safe, ensure product protection, inform the consumer and constitute a major part of attractiveness to the buyer. Successful packaging and labelling endevours require constant upgrading of knowledge and skills, as well as implementation of regulations in force.

Poor bulk packaging or improper handling along the supply chain are amongst the main causes of damage and decay of food products. In the case of fruit and vegetables, losses resulting from compression and abrasion tend to be highest during transport. This compromises the quality and economic value of fresh produce. The use of appropriate packaging can significantly reduce these losses, protecting produce in transit, and ultimately reducing the carbon footprint of food.

Labeling errors can result in premature spoiling, cross contamination, consumer illness and fatalities in addition to loss of consumer confidence.

Small and medium-sized enterprises (SMEs) and businesses have to ensure that they can produce sufficient quantities to meet their clients’ demand, while coping with arrangements for distribution, shipping, storage, logistics and other services. In addition to this, they need to invest in packaging and labelling. This entails knowing regulatory requirements and constantly innovating to keep ahead in a very competitive industry. SMEs seeking to export must meet international quality standards, especially for the export of food and agro-processed goods, including labelling requirements. These represent key items of expenditure and need to be budgetted for.

As the demand for ethically sourced, safe, and environmentally friendly products continues to grow, the role of agrifood entrepreneurs and SMEs in driving positive change through packaging and labelling innovations cannot be overstated. SMEs and businesses need more knowledge on labelling required by export markets, as well as skills and resources to develop brands and packaging.

Low investment in packaging industries needs to be addressed along increased use of recycled packaging materials (when they pose no problem of contamination). This entails conducive policies and regulations, access to finance and technologies.

As sustainability becomes more important, SMEs and businesses need to invest in innovations for presentation, especially in the design and format of packaging and on recyclable packaging technologies.

The common challenges for Caribbean SMEs are related to the lack of resources, such as infrastructure, human and financial aspects of implementation and maintenance of certification.

Entrepreneurs need to understand costs incurred, the shelf life of their products when using sustainable packaging, and the awareness of sustainable packaging, all of which will affect the selling price of the product itself.

Increased efforts by governments and industry are needed to inform consumers on mandatory food labelling and to finance public campaigns on healthy diets.